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Primary and secondary platinum supply to shrink

Global – Platinum supply is projected to fall by 2% year-on-year to 7,330 koz in 2017, according to the World Platinum Investment Council (WPIC). ‘Both primary and secondary supply are expected to decline’, the group writes in its latest Platinum Quarterly.

Total mine supply hit 1,330 koz, which represents a decrease of 6.3% year-on-year, thus marking the lowest result since the third quarter of 2014.

Recycling is projected to fall by 6% year-on-year to 1,760 koz in 2017. Automotive demand for 2016 and 2017 is revised upward by 45 koz.

Secondary supply from jewellery recycling is projected to decline by 20% year-on-year with recycling trends normalising following ‘unusually large stock flows’ in China last year.

On the whole, the platinum market is expected to be ‘broadly balanced’ over the year, with a deficit of 65 koz. ‘This quarter’s report reinforces our long held view that supply will become increasingly constrained in 2017,’ says Paul Wilson, chief executive officer of WPIC.

The upward revisions of automotive platinum demand in 2016 and 2017 is thought to show that automakers are increasing platinum loadings on vehicles in the face of increased scrutiny of emissions levels.

‘We believe that platinum will be an integral part of the solution that the carmakers turn to in 2017 and beyond,’ Wilson adds.

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